Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/222975
Title: SPATIAL CONCENTRATION TREND OF FOREIGN HOMEBUYERS, NEW HOME SUPPLIES, SUB-SALES TRANSACTIONS
Authors: LAM WENWEI
Keywords: Real Estate
RE
Fu Yuming
2012/2013 RE
Issue Date: 16-Apr-2013
Citation: LAM WENWEI (2013-04-16). SPATIAL CONCENTRATION TREND OF FOREIGN HOMEBUYERS, NEW HOME SUPPLIES, SUB-SALES TRANSACTIONS. ScholarBank@NUS Repository.
Abstract: This paper examines the spatial concentration of foreign homebuyers and broadly investigates the influence of projects and location on their housing decisions. In addition, this study also seeks to detect possible interaction between foreign transactions and speculative activities. This would provide empirical evidence to support the postulation that foreign homebuyers’ location choice influences volume dynamics of the housing market. Results from the Herfindahl Index revealed that the spatial concentration of foreigners is consistently higher than the national level throughout the sample period. However, this geographical concentration was found to be sensitive to housing and economic cycles, thereby implying a dynamic spatial pattern. In fact, a decentralisation trend has been observed in recent years. Moving on, an autoregressive model was constructed to examine the influence of location and to estimate the impact of housing supplies on foreigners’ location choices. In short, foreigners who opt to stay in central regions are attracted by the location attributes and not the new projects. In contrast, foreigners who purchase properties in non-central regions are likely to be attracted to the new projects rather than the location. Lastly, a cointegration analysis was conducted for sub-sales and foreign transactions. A long run relationship between the two variables was found to exist at the National level, Core Central Region and Rest of Central Region. Furthermore, an error correction model revealed that foreign transactions adjust to sub-sales, hence implying that the level of sub-sales drives foreign transactions. Alternatively, it could be a result of speculators’ anticipation of foreign demand.
URI: https://scholarbank.nus.edu.sg/handle/10635/222975
Appears in Collections:Bachelor's Theses

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